Terai Tea Company reported a sharp rise in standalone net profit for FY26, driven by significant deferred tax benefits and gains from mutual fund investments. The Kolkata-based tea manufacturer posted a net profit of ₹959.92 lakh for the year ended March 31, 2026, up from ₹368.06 lakh in the previous year.

Despite the bottom-line improvement, revenue from operations contracted 14% to ₹8,871.39 lakh, reflecting lower average price realizations in the tea market. Production volumes, however, expanded significantly, indicating a divergence between supply and pricing power.

Financial Performance

The company’s total income stood at ₹10,266.63 lakh, supported by other income of ₹1,395.24 lakh. This included ₹350.21 lakh from profits on the sale or redemption of mutual funds and ₹988.11 lakh from the sale of rights in agricultural land.

The profit before tax rose 19% to ₹513.72 lakh, aided by a reduction in finance costs to ₹324.45 lakh from ₹350.08 lakh. Depreciation expenses also decreased slightly to ₹116.71 lakh.

What the Numbers Show

The surge in net profit was primarily non-operational. Standalone profit before tax increased by only ₹83.61 lakh, yet net profit jumped by nearly ₹592 lakh. This divergence is explained by a ₹425.95 lakh credit in deferred tax expenses, compared to a charge of ₹51.86 lakh in FY25. Additionally, other income grew by ₹300.31 lakh, largely due to capital gains on mutual funds and land rights sales. Operational margins remained under pressure as revenue fell despite higher production volumes.

Operational Review

Total tea production increased 27% to 26.94 lakh kg of black tea, up from 21.22 lakh kg in FY25. Sales quantity also rose sharply to 26.32 lakh kg from 18.10 lakh kg.

However, average price realization dropped to ₹120.99 per kg from ₹161.36 per kg. Management attributed the price decline to higher supply, lower domestic consumption, quality issues, and low-cost imports from neighboring countries.

Consolidated View

On a consolidated basis, net profit after tax fell to ₹518.46 lakh from ₹953.13 lakh in the previous year. This decline was driven by a re-measurement loss of ₹760.23 lakh from associate companies, which offset the share of profit of ₹318.76 lakh earned from these associates.

Corporate Developments

The Board of Directors did not recommend a dividend for FY26, citing funding requirements for ongoing expansion plans. The company’s debt-equity ratio improved to 0.39 from 0.77, following loan repayments and an increase in reserves.

Mr. Rajendra Kanodia, Non-Executive Director, retires by rotation at the upcoming AGM scheduled for September 30, 2026. Shareholders will also vote on his re-appointment as Whole-Time Director for a five-year term.

Terai Tea Company has changed the designation of Rajendra Kanodia from Non-Executive Director to Executive-Whole-time Director. The board approved the move on August 25, 2026, for a five-year term starting immediately.

The appointment requires shareholder approval at the ensuing annual general meeting. The Nomination and Remuneration Committee recommended the change and the fixation of remuneration.

Key Details

• Effective Date: August 25, 2026
• Term: Five years, ending August 24, 2031
• Previous Role: Non-Executive Director
• New Role: Executive-Whole-time Director

Profile and Background

Rajendra Kanodia holds a graduation degree in Commerce. He possesses over 40 years of experience in tea plantation, marketing, and financial business. He has served as a member of the board since January 28, 1987.

The company disclosed that Kanodia has no relationship with any other managerial personnel or directors of the company. The board meeting commenced at 4:00 pm and concluded at 5:00 pm.